Tuesday, 31 May 2016
Question 1.2
Techno-economic Paradigm
uTechno-economic
paradigm shifts are at the core of general, innovation-based theory of economic
and societal development as conceived by Carlota Perez.
uOn this basis it
defines technological revolutions, examines their structure and the role that
they play in rejuvenating the whole economy through the application of the
accompanying techno-economic paradigm.
This
“over-arching meta-paradigm” is in turn defined in its components and its impact, including its influence
on institutional and social changeQuestion 1.1
uDigital divide
refers to economic and social unfairness towards getting access to information
and communication technologies which varies from country to country.
uThis technology can
include the telephone, television, personal computers and the Internet.
uThe term
became popular in the
late 1990s, among
concerned groups, such as
scholars, policy makers, and advocacy groups.
uThe government
can increase access to the internet by adding Wi-Fi poles to areas that are
deprived of access and encourage all stores to supply Wi-Fi to paying
customers. We could also hold fund raising events to not only raise funds but
creating awareness within the communities.
uThe government
should also supply common working environments where they supply both computers
and Wi-Fi to be accessed by various communities in need who are deprived from
access.
uReducing the cost of
Digital Divide
uIncreasing
Knowledge/Skills of public
Social Capital
uSocial capital is the
joint value of all social networks and the preferences that arise from these
networks in assisting each other.
uImpact of
digital divide to social capital occurs when other people cannot access or have
limited access to social networks.
uVarious types
of social capital may affect people's access and use of the Internet.
uThis will
result in a person not being part of the global economy. Lacking information and struggling
to compete in digital world.
Knowledge Capital
uKnowledge
Capital is an intangible asset that comprises the information and skills of a company's
employees, their experience with business processes, group work and on-the-job
learning.
uThe physical
factors of production has
nothing to do with knowledge capital. (land, labor and capital)
uKnowledge
capital refers to the skills that employees share with each other in order to
improve efficiency in
and around the business, rather than on
physical items.
uHaving employees with
skills and access to knowledge capital puts a company at a competitive
advantage.
uThe digital
divide would put constraints on the amounts of knowledge that employees can
share with one another, their access to knowledge capital will directly effect
the competitive advantage over other businesses and put the business at a weak
standing point.
The digital
divide will also affect the skills of the employees as they will have less
access to knowledge and this would restrict their skill development.
Human Capital
uHuman capital is a term made popular
by Gary Becker an
economist from the University of Chicago and Jacob Mincer.
uIt refers the knowledge, habits, social,
creativity and character
attributes.
uIt is the
ability for people to perform labor
so as to produce economic value.
uThe digital
divide restricts human capital as it gives constraints to how people perform
labor by restricting the amount of knowledge, social interactions and their
personal habits they have access to.
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